IBM Analysis_en

FINANCIAL STATEMENT ANALYSIS

International Business Machines,

abbreviated IBM, CORPORATION

Jan. 2010

PREPARED BY: ِAmer Moftah, Haytham Miqdad, and Mohammed El Ghoul

SUPERVISED BY: LECTURER: EMAD ABUSHAABAN

Executive summary:

IBM is a multinational computer, technology and IT consulting corporation headquartered in Armonk, North Castle, New York, United States. The company is one of the few information technology companies with a continuous history dating back to the 19th century. IBM manufactures and sells computer hardware and software (with a focus on the latter), and offers infrastructure services, hosting services, and consulting services in areas ranging from mainframe computers to nanotechnology. It has been nicknamed "Big Blue" for its official corporate color.

IBM incorporation was our study because IBM has been well known through most of its recent history as the world's largest computer company and systems integrator. With over 398,455 employees worldwide, IBM is the largest and most profitable information technology employer in the world.

IBM are facing smarter planet plan that aims to repair what is broken, but to prepare for a 21st Century economy and IBM is working so hard to reach to the smarter planet.

Finally, IBM Deserves to stay. Because it's a high-bred company that Accomplished much achievements and still made a lot.

Historical background:

International Business Machines, abbreviated IBM,

Is a multinational computer, technology and IT consulting corporation headquartered in Armonk, North Castle, New York, United States. The company is one of the few information technology companies with a continuous history dating back to the 19th century. IBM manufactures and sells computer hardware and software (with a focus on the latter), and offers infrastructure services, hosting services, and consulting services in areas ranging from mainframe computers to nanotechnology.^[2] It has been nicknamed "Big Blue" for its official corporate color.

IBM has been well known through most of its recent history as the world's largest computer company and systems integrator. With over 398,455 employees worldwide, IBM is the largest and most profitable ^information technology employer in the world. IBM holds more patents than any other U.S. based Technology Company and has eight research laboratories worldwide. The company has scientists, engineers, consultants, and sales professionals in over 170 countries. IBM employees have earned five Nobel Prizes, four Turing Awards, nine National Medals of Technology, and five National Medals of Science. As a chip maker, IBM has been among the Worldwide Top 20 Semiconductor Sales Leaders in past years.

The company which became IBM was founded in 1896 as the Tabulating Machine Company by Herman Hollerith, in Broome County, New York (Endicott, New York or Binghamton, New York), where it still maintains very limited operations. It was incorporated as Computing Tabulating Recording Corporation on June 16, 1911, and was listed on the New York Stock Exchange in 1916 by George Winthrop Fairchild.

CTR's Canadian and later South American subsidiary was named International Business Machines in 1917, and the whole company took this name in 1924 when Thomas J. Watson took control of it. IBM's first U.S. trademark was for the name "THINK" filed as a U.S. trademark on June 6, 1935. "THINK" was the IBM philosophy Watson summarized with a motto consisting of one word. The name was attributed to a monthly magazine called 'Think' is distributed to the employees of IBM in the 1930's. A U.S. trademark for "IBM" was not filed until approximately 14 years later, on May 24, 1949.

A century of innovation:

1886: Dr. Herman Hollerith conducts the first practical test of his tabulating system in recording and tabulating vital statistics for the Baltimore (Md.) Department of Health. (Hollerith will later form one of IBM.s predecessor companies.).

1889: Harlow Bundy incorporates the Bundy Manufacturing Company as the first time recording company in the world. It produces a time clock invented by his brother Willard L., a jeweler in Auburn, N.Y. (The Bundy Manufacturing Company will be consolidated into one of IBM.s forerunners in 1902.).

1891: Edward Canby and Orange O. Ozias of Dayton, Ohio, purchase Julius Pitraps patents and incorporate The Computing Scale Company as the worlds first computing scales company. (It will become one of the principal components of the future IBM.)

1896: Herman Hollerith's Tabulating Machine Company is organized in Washington, D.C., as the world's first electric tabulating and accounting Machine Company.

1914: Gross income from sales, service and rentals in the United States is $4 million. One hundred shares of C-T-R stock are worth less than $3,000. The company has 770 stockholders and 1,346 employees at year-end.

1917: The Computing-Tabulating-Recording Company enters the Canadian market under name of International Business Machines Co., Limited. Computing Scale Company of Canada, Limited is absorbed into International Business Machines Company, Ltd.

1919: The Computing-Tabulating-Recording Company enters the European market.

1924: The Computing-Tabulating-Recording Co. is renamed International Business Machines Corporation (IBM).

1926: IBM wins grand prizes for products at the Sesquicentennial Exposition in Philadelphia.

1929: The stock market crashes but IBM declares a five percent stock dividend. Gross income passes the $18 million mark and net earnings grow to $7 million. There are 5,999 employees.

1930: Automatic Accounting Scale Company, makers of automatic counting scales, is acquired. The International Scale Company is organized as a subsidiary of IBM, and takes over the now complete line of industrial scales.

1935: The first issue of Think, an employee and customer magazine, is published. IBM holds its first training class for women systems service professionals in Endicott, N.Y.

1943: The use of safety glasses and safety shoes is adopted in IBM manufacturing departments.

1944: IBM presents its first large scale computer, the Automatic Sequence Controlled Calculator (ASCC), to Harvard University.

1953: IBM announces the 702 computer for commercial use, and the 650 Magnetic Drum Calculators, an intermediate size electronic computer, to handle widely diversified accounting and scientific computations. (Nearly 2,000 IBM's 650s are sold by 1962, making the 650 the most popular computer of the 1950s). The Model (A) Toll Biller is also introduced.

1957: IBM announces the model 709 computer, and makes FORTRAN scientific programming language available to customers.

1962: IBM announces a low-cost 1440 data processing system; the 7094, one of the most powerful computing systems offered by IBM to date; the 7010 data processing system; the 7710 data communication unit, which permits computers at different locations to exchange information via high-speed facilities; the 7750, which allows a single computer to communicate with large numbers of widely-separated terminals; the 1420 bank transit system; the 1062 teller terminal; the 6400 Accounting Machine; and the .Electric. Input/output typewriter.

1969: IBM computers help NASA put the first men on the Moon. An onboard computer in the Orbiting Astronomical Observatory II operates for a full year.

IBM scientists develop experimental devices using laser beams to store huge amounts of information, as well as techniques for word recognition, speaker identification and advanced audio response.

1971: The System/370 Models 135 and 195 are announced. The Model 195 is the most powerful computer to date in IBM.s product line. The first customer installations of System/370 are made seven months ahead of schedule. By year end, more than 1,300 System/370 deliveries are made worldwide.

1986: New IBM 3090 models 150 and 180, which feature a single central processor with the same advanced technology and architecture as the more powerful models 200 and 400, are announced in February. Also announced are four high-performance processors for the 4381 systems, offering up to 35 percent more computing power than current 4381 processors and at a lower cost. The first IBM 3090 Model 150 mainframe is delivered in June (to Lockheed Aircraft Service Co. in Ontario, Calif.).

1994: IBM announces in April the System/390 Parallel Sysplex Offering, encompassing the Coupling Facility, the S/390 Parallel Transaction Server, high-speed coupling links and software enhancements. Also announced at that time are the S/390 Parallel Query Server, a specialized database server to the existing ES/9000 complex, the ES/9000 Model 9X2, and five new ES/9000 air-cooled processors. Six models of the System/390 Parallel Enterprise Server, along with new versions or releases of IBM mainframe operating systems, are rolled out in September.

1996: IBM introduces in September its third generation of microprocessor-based mainframes, the S/390 Parallel Enterprise Server. With twice the performance of IBM.s previous high-end S/390 CMOS servers, it can be linked to other S/390 systems to deliver more than 10,000 MIPS. At the same time, IBM also launches the System/390 Multiprise 2000 line, designed specifically for customers who need more flexible networking capabilities and computing power. Shipments of mainframe power grow 50 percent during the year.

2000: IBM introduces the IBM eServer, a new generation of servers featuring mainframe-class reliability and scalability, broad support of open standards for the development of new applications, and capacity on demand for managing the unprecedented needs of e-business.

2002: Samuel J. Palmisano is elected chief executive officer effective March 1, while remaining president of IBM.

2005: The company introduces the IBM System z9 mainframe in July. Representing a three-year, $1.2 billion development effort encompassing 5,000 IBM engineers, software developers, technology professionals and security experts from around the world, the System z9 performs as the hub in a new era of collaborative computing.